Red Ink in Financial Markets!

February 26 2021. What generated the red ink in Financial Markets?

Key indices including NASDAQ (down 478 points), S&P (down 96 points) and DOW Jones (down 560 points) had their roughest day in last couple of months. Lets take a look at what happened. 

Two Year treasury yields rose by 5 basis points and three year yield was up by 10 basis points this morning sending markets tumbling down! The daily treasury yield are published  here.

Fear of Fed tightening monetary policy and increasing rates raised concerns around slowing economic growth.  US Government seems to be getting more and more confidant about vaccination and herd immunity to put the pandemic behind, triggering the rise in treasury yields.